55532 Federal Register / Vol. 71, No. 184 / Friday, September 22, 2006 / Notices 

16 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3 15 U.S.C. 78s(b)(3)(A)(ii). 

4 17 CFR 240.19b–4(f)(2). 

5CBOE represents that, as used in its Fees 

Schedule, the term ‘‘customer’’ refers to a public 

customer. Telephone conference between David 

Liu, Special Counsel, Division of Market 

Regulation, Commission, and Patrick Sexton, 

Associate General Counsel, Exchange, on 

September 12, 2006. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.16

Jill M. Peterson, 

Assistant Secretary. 

[FR Doc. 06–8038 Filed 9–21–06; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–54465; File No. SR–CBOE–

2006–76] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Relating to Its Marketing 

Fee Program 

September 18, 2006. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’) 1 and Rule 19b–4 thereunder,2

notice is hereby given that on 

September 1, 2006, the Chicago Board 

Options Exchange, Incorporated 

(‘‘CBOE’’ or ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I, II, and 

III below, which Items have been 

prepared by the Exchange. CBOE has 

designated this proposal as one 

establishing or changing a due, fee, or 

other charge imposed by CBOE under 

Section 19(b)(3)(A)(ii) of the Act 3 and 

Rule 19b–4(f)(2) thereunder,4 which 

renders the proposal effective upon 

filing with the Commission. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

CBOE proposes to amend its 

marketing fee program. Below is the text 

of the proposed rule change. Proposed 

new language is in italics; deleted 

language is in [brackets]. 

Chicago Board Options Exchange, Inc. 

Fees Schedule 

[August 29]September 1, 2006 

1. No Change. 

2. Marketing Fee (6)(16): $.65 

3.–4. No Change. 

FOOTNOTES: 

(1)–(5) No Change. 

(6) The Marketing Fee will be 

assessed only on transactions of MarketMakers, RMMs, e-DPMs, DPMs, and 

LMMs resulting from [orders for less 

than 1,000 contracts] (i) orders for less 

than 1,000 contracts from payment 

accepting firms, or (ii) customer orders 

for less than 1,000 contracts that have 

designated a ‘‘Preferred Market-Maker’’

under CBOE Rule 8.13 at the rate of $.65 

per contract on all classes of equity 

options, options on HOLDRs, options on 

SPDRs, options on DIA, options on 

NDX, and options on RUT. The fee will 

not apply to: Market-Maker-to-MarketMaker transactions including 

transactions resulting from orders from 

non-member market-makers; 

transactions resulting from inbound P/A 

orders or a transaction resulting from 

the execution of an order against the 

DPM’s account if an order directly 

related to that order is represented and 

executed through the Linkage Plan 

using the DPM’s account; transactions 

resulting from accommodation 

liquidations (cabinet trades); and 

transactions resulting from dividend 

strategies, merger strategies, and short 

stock interest strategies as defined in 

footnote 13 of this Fees Schedule. This 

fee shall not apply to index options and 

options on ETFs (other than options on 

SPDRs, options on DIA, options on 

NDX, and options on RUT). A Preferred 

Market-Maker will only be given access 

to the marketing fee funds generated 

from a Preferred order if the Preferred 

Market-Maker has an appointment in 

the class in which the Preferred order is 

received and executed. 

Rebate/Carryover Process. If less than 

80% of the marketing fee funds 

collected in a given month is paid out 

by the DPM/LMM or Preferred MarketMaker in a given month, then the 

Exchange would refund such surplus at 

the end of the month on a pro rata basis 

based upon contributions made by the 

Market-Makers, RMMs, e-DPMs, DPMs 

and LMMs in that month. However, if 

80% or more of the funds collected in 

a given month is paid out by the DPM/ 

LMM or Preferred Market-Maker, there 

will not be a rebate for that month and 

the excess funds will be included in an 

Excess Pool of funds to be used by the 

DPM/LMM or Preferred Market-Maker 

in subsequent months. The total balance 

of the Excess Pool of funds for a DPM/ 

LMM cannot exceed $25,000, and the 

total balance of the Excess Pool of funds 

for a Preferred Market-Maker cannot 

exceed $80,000. If in any month the 

DPM/LMM Excess Pool balance were to 

exceed $25,000, or the Preferred MarketMaker Excess Pool balance were to 

exceed $80,000, the funds in excess of 

$25,000 or $80,000, respectively, would 

be refunded on a pro rata basis based 

upon contributions made by the MarketMakers, RMMs, DPMs, e-DPMs and 

LMMs in that month. 

CBOE’s marketing fee program as 

described above will be in effect until 

June 2, 2007. 

Remainder of Fees Schedule—No 

change. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

Exchange included statements 

concerning the purpose of and basis for 

the proposed rule change, and discussed 

any comments it received on the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item IV below. CBOE 

has prepared summaries, set forth in 

Sections A, B, and C below, of the most 

significant aspects of such statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

CBOE proposes to amend its 

marketing fee program as it relates to 

orders designating a ‘‘Preferred MarketMaker’’ under CBOE Rule 8.13. Going 

forward, CBOE proposes to assess the 

fee only on transactions of MarketMakers, RMMs, e-DPMs, DPMs, and 

LMMs (collectively ‘‘Market-Makers’’) 

resulting from customer orders 5 for less 

than 1,000 contracts that have 

designated a ‘‘Preferred Market-Maker’’

under CBOE Rule 8.13. The Exchange 

states that previously, transactions of 

Market-Makers resulting from all orders 

of 1,000 contracts or less that have 

designated a ‘‘Preferred Market-Maker’’

under CBOE Rule 8.13 were assessed 

the marketing fee. CBOE would 

continue to assess the fee on 

transactions of Market-Makers resulting 

from orders for less than 1,000 contracts 

from payment accepting firms. 

CBOE states that it is not amending its 

marketing fee program in any other 

respects. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 


sroberts on PROD1PC70 with NOTICES
Federal Register / Vol. 71, No. 184 / Friday, September 22, 2006 / Notices 55533 

6 15 U.S.C. 78f(b). 

7 15 U.S.C. 78f(b)(4). 

8 15 U.S.C. 78s(b)(3)(A)(ii). 

9 17 CFR 240.19b–4(f)(2). 

10 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3Changes are marked to the rule text that appears 

in the electronic manual of Nasdaq found at 

http://www.complinet.com/nasdaq. 

Section 6(b) of the Act,6 in general, and 

furthers the objectives of Section 6(b)(4) 

of the Act,7 in particular, in that it is 

designed to provide for the equitable 

allocation of reasonable dues, fees, and 

other charges among CBOE members. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

The Exchange neither solicited nor 

received comments on the proposal. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing proposed rule change 

has been designated as a fee change 

pursuant to Section 19(b)(3)(A)(ii) of the 

Act 8 and Rule 19b–4(f)(2) 9 thereunder, 

because it establishes or changes a due, 

fee, or other charge imposed by the 

Exchange. Accordingly, the proposal 

will take effect upon filing with the 

Commission. At any time within 60 

days of the filing of such proposed rule 

change the Commission may summarily 

abrogate such rule change if it appears 

to the Commission that such action is 

necessary or appropriate in the public 

interest, for the protection of investors, 

or otherwise in furtherance of the 

purposes of the Act. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s Internet 

comment form (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an e-mail to rulecomments@sec.gov. Please include File 

Number SR–CBOE–2006–76 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Nancy M. Morris, Secretary, 

Securities and Exchange Commission, 

100 F Street, NE., Washington, DC 

20549–1090. 

All submissions should refer to File 

Number SR–CBOE–2006–76. This file 

number should be included on the 

subject line if e-mail is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

Internet Web site (http://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for inspection and copying in 

the Commission’s Public Reference 

Room. Copies of such filing also will be 

available for inspection and copying at 

the principal office of CBOE. All 

comments received will be posted 

without change; the Commission does 

not edit personal identifying 

information from submissions. You 

should submit only information that 

you wish to make available publicly. All 

submissions should refer to File 

Number SR–CBOE–2006–76 and should 

be submitted on or before October 13, 

2006. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.10

Jill M. Peterson, 

Assistant Secretary. 

[FR Doc. 06–8037 Filed 9–21–06; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–54459; File No. SR–

NASDAQ–2006–035] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Order Granting Accelerated 

Approval of Proposed Rule Change To 

Amend Existing Rules for Portfolio 

Depository Receipts, Index Fund 

Shares, and Index-Linked Securities 

September 15, 2006. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on 

September 14, 2006, The NASDAQ 

Stock Market LLC (‘‘Nasdaq’’) filed with 

the Securities and Exchange 

Commission (‘‘Commission’’) the 

proposed rule change as described in 

Items I, II, and III below, which Items 

have been prepared by Nasdaq. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons and to 

approve the proposed rule change on an 

accelerated basis. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

Nasdaq proposes to amend its existing 

rules for portfolio depository receipts, 

index fund shares, and index-linked 

securities to provide that an eligible 

index may be calculated following a 

methodology weighting components 

based on one or more of the following: 

Sales, cash flow, book value, and 

dividends. 

The text of the proposed rule change 

is below. Proposed new language is 

italicized; there are no proposed 

deletions.3

* * * * * 

4420. Quantitative Listing Criteria 

(a)–(h) No Change. 

(i) Portfolio Depository Receipts 

(1)–(2) No Change. 

(3)(A) No Change. 

(3)(B) Index Methodology and 

Calculation 

(i) The index underlying a series of 

Portfolio Depository Receipts will be 

calculated based on [either] the market 

capitalization, modified market 

capitalization, price, equal-dollar or 

modified equal-dollar weighting or a 

methodology weighting components of 

the index based on any, some or all of 

the following: Sales, cash flow, book 

value and dividends; 

(3)(B)(ii)–(iii) No Change. 

(3)(C)–(E) No Change. 

(4)–(7) No Change. 

(j) Index Fund Shares 

(1)–(2) No Change. 

(3)(A) No Change. 

(3)(B) Index Methodology and 

Calculation 

(i) The index underlying a series of 

Index Fund Shares will be calculated 

based on [either] the market 

capitalization, modified market 

capitalization, price, equal-dollar or 

modified equal-dollar weighting or a 


sroberts on PROD1PC70 with NOTICES